- Watsco’s earnings per share (EPS) for the second quarter were $4.52, slightly higher than last year’s $4.49 but below the estimate of $4.81.
- Revenue for the quarter was $2.06 billion, a decrease of 3.6% compared to the previous year, and fell short of the projected $2.23 billion.
- Operating margin improved to 13.2% compared to 12.6% last year, surpassing the estimate of 12.9%.
- Gross margin increased to 29.3% from last year’s 27.1%, exceeding the estimated 27.6%.
- CEO Albert H. Nahmad noted that the results were impacted by softer market conditions and the transition to new A2L products.
- The stock has analyst ratings consisting of 3 buys, 11 holds, and 2 sells.
Watsco Inc on Smartkarma
Independent analysts on Smartkarma are providing insightful coverage of Watsco Inc, the largest distributor of HVAC equipment in North America. Business Breakdowns, in their report titled “Watsco: Air Apparent – [Business Breakdowns, EP.209]“, highlights Watsco’s key role as the intermediary between manufacturers and contractors. The report lauds Watsco’s diverse range of equipment, technical expertise, and value-added services that cater to contractor needs. With a bullish sentiment, the analysts note Watsco’s remarkable growth since transitioning to a distributor in 1989, delivering consistent shareholder returns.
A look at Watsco Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Watsco Inc, a company distributing air conditioning, heating, and refrigeration equipment along with related parts and supplies across various locations in the United States, particularly focusing on the Sunbelt region, holds promising long-term prospects as indicated by its Smartkarma Smart Scores. With a solid Resilience score of 4, Watsco Inc demonstrates strength in weathering market uncertainties and potential downturns effectively. Additionally, its Momentum score of 4 suggests favorable performance trends and market sentiment, enhancing its growth potential. While the Value score stands at 2, suggesting some room for improvement in terms of undervaluation, the Dividend and Growth scores of 3 each indicate stable dividend payments and moderate growth prospects, contributing to Watsco Inc‘s overall positive outlook for the future.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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